Bengaluru, Aug 19 — Amid protests by the Opposition that is seeking the resignation of Planning and Statistics Minister B. Nagendra over his alleged role in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation irregularities, the Karnataka government on Wednesday made a statement on the floor of both Houses of state legislature, urging the Opposition to end its protest and participate in a discussion on the issue.

Deputy Chief Minister G. Parameshwara, while presenting the government's statement in the Legislative Assembly and Legislative Council, said the Opposition was disrupting the proceedings by making allegations against Nagendra and demanded that the issue be discussed through constitutional and parliamentary procedures.

The government said the legislature was being conducted with taxpayers' money and that disruptions for political reasons amounted to a disservice to the people and the Constitution.

According to the government's statement, on February 19, 2024, the Managing Director of the Valmiki Corporation opened an account at the Union Bank of India’s M.G. Road branch in Bengaluru and transferred funds to it.

As of March 4, 2024, a total of Rs 187.33 crore was transferred to the account. This included Rs 143.99 crore from 20 bank accounts maintained by the Corporation and Rs 43.33 crore from the State Huzur Account.

The government said the Corporation's Managing Director had the authority to transfer the funds and that neither ministerial nor government approval was required for the transfer.

Of the Rs 187.33 crore, Rs 89.63 crore was subsequently transferred to 18 unidentified bank accounts using allegedly forged documents. The government said Rs 5 crore was later returned to the Corporation's Union Bank account from RBL Bank in Hyderabad on May 23, 2024.

The case gained prominence after Corporation accounts superintendent P. Chandrashekhar died by suicide at his residence in Shivamogga on May 25, 2024. According to the government, he left behind a six-page death note alleging illegal transfer of Corporation funds.

Based on a complaint by Chandrashekhar's wife, Kavitha, a case relating to abetment of suicide was registered at Vinobanagar police station in Shivamogga on May 26.

On May 28, the Corporation's General Manager filed a complaint at the High Grounds police station in Bengaluru regarding the alleged illegal transfer of funds.

The government said it constituted a Special Investigation Team (SIT) under the Criminal Investigation Department (CID) on May 31, 2024, to conduct a comprehensive investigation.

The Central Bureau of Investigation (CBI) subsequently registered an FIR on June 3 based on a complaint by Union Bank of India officials. The Enforcement Directorate (ED) also registered an ECIR on June 6 under the Prevention of Money Laundering Act (PMLA).

The government said that despite the CBI and ED investigations, the state CID's SIT identified and arrested 14 accused persons.

The government said cash, gold biscuits, jewellery and several vehicles were seized from the accused during the investigation.

The seizures included Rs 16.83 crore in cash and 16.2546 kg of gold biscuits and jewellery. Vehicles including Lamborghini, Mercedes-Benz, Creta and Innova Hycross were also seized, although the government said the original owners subsequently approached the court and secured their vehicles after making payments.

According to the government, a total of Rs 79.68 crore has so far been recovered or is in the process of being recovered in the form of cash, gold and other valuables. The SIT is continuing its investigation into the remaining Rs 4.94 crore.

The government statement said Nagendra voluntarily resigned as Minister for Tribal Welfare, Youth Empowerment and Sports on June 6, 2024.

The ED searched his premises on July 10, 2024, and questioned him the following day. He was subsequently taken into custody on July 12 after appearing before the agency under a notice issued under Section 50 of the PMLA.

However, the government highlighted that the SIT's preliminary chargesheet filed on August 5, 2024, did not name Nagendra as an accused.

It said the SIT's supplementary chargesheet filed on November 10, 2025, also did not name him as an accused.

The government said the ED, in its chargesheet filed before the Special Court for MPs and MLAs on September 9, 2024, named Nagendra as Accused No. 1 among 25 accused. However, the Special Court granted him bail on October 14, 2024.

The government further stated that the same court granted Nagendra anticipatory bail in the CBI case on January 14, 2026.

The government said the principal accused identified by the SIT, A1 Satyanarayana Verma, along with Srinivas Rao Kaki, Satyanarayana Itkari, former Corporation Managing Director J.G. Padmanabha and accountant Parashuram Durgannavar, allegedly played key roles in the conspiracy to illegally transfer Corporation funds.

It said Verma was a habitual offender and had faced a similar case in Chhattisgarh before the Valmiki Corporation case.

The government claimed that Verma had not been granted bail by any court and remained in judicial custody, arguing that the SIT had conducted a comprehensive investigation and placed evidence before the court.

The statement further claimed that this demonstrated the effectiveness of the state investigation agency compared with the central agencies.

The government said that although the ED and CBI had named Nagendra in their respective chargesheets, no court had convicted him in the case.

It also said courts had issued directions preventing further legal action against him at the relevant stage.

The government maintained that the investigation had prima facie established that bank and Corporation officials had acted together to illegally transfer Rs 84.63 crore and that Rs 79.68 crore had already been recovered in the form of money and valuables.

The government also criticised the Opposition's allegations against the CBI and ED, citing observations made by the Supreme Court and various High Courts regarding the functioning of central investigative agencies.

It further referred to figures submitted by the Centre in an affidavit before the Supreme Court concerning criminal cases pending against sitting and former legislators, arguing that criminal cases against public representatives were not unusual.

The government concluded by saying that the Opposition's continued protest was an insult to the parliamentary system and urged members to withdraw their agitation and participate in the legislative proceedings.

The government said the details were placed before the House in good faith to clarify what had happened in the Valmiki Corporation case and to enable the legislature to discuss the matter in the interest of the people of Karnataka.

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